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Taiwanese firms in Turkey face risk as local currency crashes

Acer, Asus, Avantech, and Synnex Technology may be facing losses in the country if the situation does not stabilize soon

Taiwanese firms in Turkey face risk as local currency crashes

(AP photo)

TAIPEI (Taiwan News) – The Turkish lira continues to rapidly depreciate in value against the U.S. dollar after the Trump administration announced it was doubling tariffs on Turkish steel and aluminum last week.

As Turkey faces a serious financial meltdown, there are several Taiwanese businesses with a significant presence in the Turkish market, that are taking measures to mitigate expected losses in response to the new sanctions and tense political environment developing in Turkey.

Liberty Times that four major Taiwanese companies may suffer losses in Turkey if the U.S. sanctions are implemented and maintained for any significant amount of time.

Avantech (研華), Synnex Technology (聯強), Acer (宏碁), and Asus (華碩) all reportedly have operations in Turkey, and will certainly be impacted by the trade spat and the crash of the lira.

Because of the currency storm and the possibility that access to materials, and to export markets will be disrupted at Turkish plants and sales centers, financial data for the performance of the companies in Turkey is currently unbalanced and for the time being unreliable, reports LTN.

For now, the impact appears minimal, but there are indications and worries that instability in Turkey may just be beginning.

The report says that ASUS has rushed to reduce risk, quickly selling off its local store of products in Turkey in exchange for U.S. dollars. ACER is also practices strategies of exchange rate hedging to reduce potential losses in international markets, according to a source from the company.

Updated : 2021-05-10 00:31 GMT+08:00